Indian Stock Markets were trading marginally higher during afternoon trade with Hero MotoCorp, Maruti Suzuki and DLF among major gainers. At 14.28 pm IST, BSE Sensex was up by 46 points at 19300 while NSE Nifty was trading higher by 10 points at 5828.
European markets have opened marginally higher. FTSE was up by 0.2 per cent at 6440. DAX and CAC were also marginally higher.
Among major gainers in today’s trade were Hero MotoCorp with gain of 4.2% at Rs 1716. Maruti Suzuki was higher by 1.8% at 1450. DLF and Larsen were up by nearly 2 per cent.
Among major losers were Jindal Steel, HUL, Tata Motors and Ambuja Cements. Reliance, ONGC and Coal India were trading marginally lower.
Indian currency was slightly higher compared to US dollar and Euro. Gold was trading at Rs 29555 for 10 grams in Mumbai market while Silver was at Rs 55050 for 1000 grams.
Monday’s stock market was full of ups and downs and it would not be wrong to say that the whole day bent towards low trade.
Though there was instability, Tata Motors was announced as gainer for Monday’s trade. It rose by 4.9% which amounted to Rs 169. There is reason for it as on the same day, the company launched the novel model of Nano.
The new model promises to deliver better services and also has increased fuel efficiency and would also boast of complete new looks which were not present in old models, but it would be sold at the same price.
It is not that Tata did not witness loss in share market. It declined by 11.36% but despite that, it managed to register growth. As per reports by brokerage firm Kotak, there is no doubt that there has been growth and main credit of it should go to the novel model of Nano, but it should be noted that there are places where it needs improvement.
First of all, the company is too lenient on operating profit front and this is the main reason for decline in the sale of domestic business. In addition, various factors like high discounts, increased market investment and negligible presence in the passenger car segment are also some of the many reasons for the decline.
Jaguar Land Rover has shown great sales in market and it has made the company earn a fat amount. TO tell in details then its profit after tax is £1 billion. Profit could have increased if forex losses would not have been there.
Officials were of the view that it is a luxury drive and is doing exceptionally well in China and Russia but as said, it is a complete luxury drive so its sales have found to be declining in developing countries by 2%.
With the intent of improving its well below-estimate sales of Tata Nano, a product ballyhooed as the cheapest car in the world, Tata Motors has recently released an upgraded and updated model of Nano. The reports were by the company on Monday that it is not entirely pleased by the sales of Nano.
Tata has roughly sold 130,000 units of Nano since the car made its debut way back in April 2009. The four-seater Nano costs no more than 140,000 INR ($2,730), and was developed with a motive of triggering the price war in Indian automobile sector. However, sales of Nano have not been promising at all and the underperformance has been haunting Tata Motors ever since the lack of sales against expectations was reported.
On the other hand, quite a few controversies surrounded Nano during its preliminary phase. Some of the troubles faced by Tata Motors regarding the development of Nano include a rise in input costs which forced the company to spike the price of Nano and later, it was caught in a land dispute at the original manufacturing unit of Nano. Due to the land dispute, Tata was forced to move its production unit to an alternative location.
Earlier in November, Tata gave Nano owners the choice to installing safety protection in their car following reports that seven Nano cars had caught fire, though the carmaker denied the situation being a recall, claiming that the fires were particular to the units.
In its latest statement, the company revealed that the modified Nano will showcase more fuel efficiency, an ultra-powerful engine along with subtle changes in interiors. Tata Motors is the third-largest carmaker in India, in terms of domestic sales.